Economist sees reasons for MAS-AirAsia merger

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Malaysia Airlines and AirAsia have figured in talks of a merger since the Covid-19 crisis began. (File pic)PETALING JAYA: An economist believes AirAsia and Malaysia Airlines should consider a merger because of the uncertainties caused by the Covid-19 pandemic, which has brought aviation to a near-standstill. Yeah Kim Leng of Sunway University said even a short-term collaboration could enhance their survival, through reducing idle capacity and sharing resources. He told FMT that the two airlines serve different segments of the market and operate with different business models, creating a healthy competition in the industry and providing variety for travellers. “Where their flight destinations do not overlap, they also help to improve Malaysia’s connectivity with the world and forge new tourism markets, both inbound and outbound. In short, the two airlines generate higher economic …